SMALL employers struggling to meet the wages bill are facing a “double jeopardy” by failing to keep to redundancy law.
That’s the view of human resources and training specialists Calibre HR & Training.
And with firms typically making more than one mistake, they could be risking total fines of nearly £80,000.
While it is possible to fall foul of employment law in several areas when making redundancies, Calibre says its is seeing frequent oversights in two particular respects - failing to consult with staff over redundancy proposals and not informing individuals who are being made redundant they have a right of appeal.
Calibre’s training director Tara Lloyd said: “We are not in the business of scaremongering. When a small business is struggling, the management team will have enough on its plate already.
“But too often we are coming across employers failing from the outset to fully meet their legal obligations when it comes to redundancies. You only have to look at the Employment Tribunals to see the consequences.”
She added: “Unfortunately, the problems can start right at the beginning of the process when redundancies are first being considered.
“While some process errors can be rectified further down the line, not every legal slip can be corrected when the wheels are already in motion.”
To help SMEs avoid potentially hazardous mistakes, Calibre has published two free fact sheets.
The Restructuring Factsheet and the Making Redundancies Factsheet both contain in-depth advice to help small business ask the right questions and do the right things, whatever the decisions that have to be made.
Ms Lloyd explained: “In my opinion, small employers are getting into difficulties because they are unaware of the finer details of the law which do not appear on many advice websites.
“When employers are facing difficulties they may be reluctant to pay lawyers’ fees, but it is vital to get professional help as soon as you start thinking about redundancies.
“As well as HR firms, which can be much cheaper than solicitors while offering the same support, banks and business support organisations often offer free helplines for business customers.”
